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Cardano price analysis: Bears not letting up

Previous Cardano price analysis calling for a short (sell) trade entry can be found here. Cardano (ADABTC) and its current bearish trend is explored on the 4 hour time frame in this analysis using one of the best tools for market analysis…trendline.

Cardano charts, Cardano investing, Cardano technical analysis

Numbers marked on the chart are discussed in the commentary below:

(1) Bearish trendline on the 4hr tf chart of Cardano from May 13, 2018 that is active till current date.

(2) Trendline (#1) is given a greater weight in this analysis than trendline (#2) that commenced on July 18, 2018. Trendline #2 also coincides with the upper region of resistance for Cardano at ~0.00001718, suggesting that it is a price level to watch once bullish momentum returns.

(3) The relative strength index (RSI) as shown here indicates a bullish divergence in Cardano with the RSI failing to confirm the new low in price currently. The bullish divergence does not automatically mean reversal of the trend, but a caution signal.

Above all, this analysis considers long (buy) entry orders on a breakout above trendline #1 more conservative than long positions entered on a breakout above trendline #2. A break out above trendline #2 and also above ~0.00001718 is even better for strategies that anticipate a break out above trendline #1 and more potential upside.

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